First network to offer 24/7 free instant settlement for fiat, digital assets and stablecoinsLaunches with existing institutional network, including regulated digital asset exchange AsiaNext, prime broker Hidden Road, liquidity provider B2C2 and connectivity to 200+ of Sygnum’s high-volume trading clientsFocused on enhancing capital efficiency and on-demand liquidity for professional and institutional market participants in Sygnum’s European and Asian home marketsFireblock’s 1,800 institutional clients will also be able to access Sygnum Connect fiat settlements through the Fireblocks platform[i]Eliminates counterparty and settlement risks between members and is fully compliant with stringent Swiss regulatory, legal and security standards
ZURICH, July 11, 2024 /PRNewswire/ — Sygnum, a global digital asset banking group, announces the launch of Sygnum Connect, its 24/7 multi-asset instant settlement network. The network settles fiat, digital assets and stablecoin transactions for institutional investors, liquidity providers, stablecoin issuers, brokers and selected exchanges. Sygnum Connect fills the current industry gap for a complete solution that delivers the capital efficiency, on-demand liquidity and institutional-grade standards the digital asset ecosystem needs for future growth.
Sygnum Connect instant settlement network:
• Fiat, digital asset and stablecoin settlements in one institutional-grade platform
• Instant 24/7 settlements, free between network members
• Eliminates counterparty and settlement risk between network members
• Fully compliant with stringent Swiss regulatory, legal and security standards
• Conveniently accessed through the Sygnum banking platform, APIs and the Fireblocks platform
• Add-on services include Lombard Loans, FX conversions and stablecoin minting and redemption
Sygnum Connect launches with a strong existing partner network, including regulated institution-only digital asset exchange AsiaNext, prime broker Hidden Road and leading liquidity provider B2C2, in addition to connectivity to more than 200 of Sygnum’s institutional high-volume trading clients.
Network members have access to instant USD, EUR, CHF and SGD fiat settlements, with settlements for a wide range of digital assets like Bitcoin, Ethereum and stablecoins being added in Q3 2024. The network’s scope is further expanded by a range of Sygnum Connect add-on services, including simultaneous delivery-vs-payment transactions, on-demand Lombard loans, FX conversions, and stablecoin minting and redemption.
Traditional settlement processes often involve capital inefficiency and add unnecessary complexity and delays, during which time assets are unavailable for investment or trade. Before the launch of Sygnum Connect, there was no instant multi-asset settlement network providing the capital efficiency, on-demand liquidity and institutional-grade standards that professional and institutional market participants increasingly require.
This launch coincides with a potential institutional adoption inflection point, driven by factors like Bitcoin spot ETFs, rising stablecoin flows and Tier 1 asset managers moving more of their assets on-chain.
Fireblocks, a digital asset infrastructure provider with over 1,800 institutional clients, will fully integrate the Sygnum Connect network into their platform in Q3 2024. This will enable network members, who are also direct Fireblocks users, to access fiat settlements through the Fireblocks Network, an enterprise-grade digital asset transfer platform for rapid digital asset transactions and dynamic payment workflow. This will significantly expand and simplify network access and avoid the added complexity of settling different types of assets through different platforms.
Kok Kee Chong, Chief Executive Officer at AsiaNext, says, “The ability to instantly settle fiat, digital payment tokens, stablecoins and tokenised money market funds (used as collateral) 24/7, is a game-changer for institutional liquidity and capital efficiency. AsiaNext is excited to leverage Sygnum Connect for our trading members, and we look forward to collaborating closely moving forward.”
Michael Higgins, Global Head of Business Development at Hidden Road, says “Digital asset market structure is undergoing an important transformation as it matures to meet the needs of institutional investors. Sygnum Connect’s 24/7 network across fiat and digital assets will bring added speed, efficiency and liquidity to market – priorities that Hidden Road and Sygnum share – and has the potential to improve settlement for institutions.”
Thomas Restout, B2C2 Group Chief Executive Officer, says “We are excited to join the Sygnum Connect Network, strengthening B2C2’s 24/7/365 instant settlement capabilities. This partnership with a major global digital asset banking group provides an additional channel for instant, multi-asset settlement. It represents another step forward in providing our clients with the industry-leading flexibility and speed necessary for navigating the dynamic digital asset market.”
Ran Goldi, Senior Vice President, Payments and Network at Fireblocks, says, “Payments have historically been bound by traditional 9-to-5 banking systems, as well as manual settlements and payouts, which have hampered the ability of businesses to move in and out of positions, as well as transfer funds, quickly. By integrating Sygnum Connect, Fireblocks Network users will be able to transfer fiat currencies between each other in real-time, 24/7, eliminating the need to wait for settlements to clear with counterparties and providing greater capital efficiency for network participants.”
Thomas Eichenberger, Chief Product Officer at Sygnum Bank, adds, “Sygnum Connect solves an important piece of the settlement puzzle by making transactions between participants in the global crypto ecosystem faster, cheaper, less risky and more reliable. Sygnum Connect is making a significant contribution to traditional financial system connectivity by empowering professional and institutional market participants to invest and transact in the digital asset economy with complete trust.”
Editor’s note:
Institutional client base at launch
Sygnum is a global digital asset banking group with a client-base approaching 2,000 professional and institutional investors, DLT firms, 20+ banks and other financial institutions across its regulated operations in Switzerland, Singapore, Abu Dhabi and Luxembourg.
Out of Sygnum’s total client base, over 200 institutional clients, including proprietary trading firms, brokers, fund and asset managers, liquidity providers as well as stablecoin issuers who regularly settle high volumes of transactions have immediate connectivity to the Sygnum Connect network.
Sygnum Connect network membership
Only institutional digital asset service providers who are clients of Sygnum Bank in Switzerland are eligible for Sygnum Connect membership. Prospective new members are evaluated and onboarded at Sygnum Bank according to stringent Swiss banking laws and regulations. In line with Sygnum’s founding policy established in 2017, it continues to focus on servicing institutional needs in its core markets of Europe and Asia.
Regulatory compliant network
Sygnum is committed to building, maintaining and growing a secure and regulatory compliant settlement network for the digital asset ecosystem. As the network grows, it will be continually updated to incorporate new features in full alignment with the evolving regulatory environment.
How instant settlements are executed
All asset types used for settlements within the network – cash, crypto and stablecoins – remain in the secure institutional-grade custody of Sygnum Bank at all times. They are not transferred outside of Sygnum’s regulated platform during the instant settlement process.
Sygnum Connect integrates directly with Sygnum’s banking platform and automatically updates the balances of its clients who execute fiat, crypto assets and stablecoins settlements without the need for any on-chain transactions. This enables the efficient use of capital and avoids potential delays and additional costs.
About Sygnum
Sygnum is a global digital asset banking group, founded on Swiss and Singapore heritage. We empower professional and institutional investors, banks, corporates and DLT foundations to invest in digital assets with complete trust. Our team enables this through our institutional-grade security, expert personal service and portfolio of regulated digital asset banking, asset management, tokenisation and B2B services.
In Switzerland, Sygnum holds a banking licence and has CMS and Major Payment Institution Licences in Singapore. The group is also regulated in the established global financial hubs of Abu Dhabi and Luxembourg.
We believe that the future has heritage. Our crypto-native team of banking, investment and digital asset technology professionals are building a trusted gateway between the traditional and digital asset economies that we call Future Finance. To learn more about how Sygnum’s mission and values are shaping this digital asset ecosystem, please visit sygnum.com and follow us on LinkedIn and X.
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[i] Fireblocks users can be onboarded as a Sygnum Bank client to access the Sygnum Connect Network
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SOURCE Sygnum
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